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Home is the most valuable asset of every person. In such a situation, everyone takes every necessary step for the safety of their home. Nowadays, to avoid increasing accidents, theft, and natural disasters, people have started considering it necessary to take home insurance. This insurance gives you mental peace that in case of any untoward incident, your home and belongings will be safe.

However, often people buy the policy in a hurry and do not read its terms and conditions properly. The result is that when it comes to making a claim, they get disappointed. Many times, the company directly rejects the claim, or the process becomes so long that people have to suffer huge losses.

1. Understand the coverage well

Often, people buy the policy just by looking at the premium. But later it is known that all the risks of the house are not covered in it. Some policies cover only the structure, while some also include furniture and electronics. Many times, in case of natural disasters like floods, earthquakes, or fire, the claim will be received only if you have taken coverage for that risk. Before buying a policy, read the coverage list carefully and choose the option according to your needs.

2. Avoid underinsurance

Many people buy insurance for a lower value of their house to save money. But when the loss is high, the claim is not given for the full amount. For example, if the value of your house is 50 lakhs and you have taken insurance of only 25 lakhs, then in case of loss, the company will cover only that much amount. In such a situation, always get the house and the goods in it insured at the right price.

3. Know the terms and exclusions of the policy

Every policy has some terms and "exclusions," i.e., cases in which the claim will not be available. Such as deliberate damage, an accident caused by weakness of the old structure, or a situation like war. In many policies, separate coverage has to be taken for jewellery or expensive goods. Read the policy document carefully, so that there is no surprise later.

4. Do not forget to pay the premium on time

Many people buy the policy, but do not pay the premium on time. Due to this, the policy lapses, and then the right to claim ends. Some companies provide a grace period, but after that, the policy gets automatically cancelled. Therefore, set a reminder in your phone to pay the premium on time or use auto payment.

5. It is very important to give correct information
If you give wrong information while buying the policy, then there can be a problem at the time of claim. Such as hiding the real price of the house, not telling about the old damage, or giving wrong information about the security arrangements. Companies investigate and can reject the claim if wrong information is found.

Compare and then buy
Nowadays, there are many portals available online where you can compare the policies of different companies according to premium and coverage.

Conclusion
Home insurance is an important way to keep your home safe. But before taking it, it is very important to understand the coverage, terms, and premium properly. A small negligence can cause the claim to be rejected. Therefore, choose the policy wisely and pay its premium on time.

Disclaimer: This content has been sourced and edited from Zee Business. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.